Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Solana [SOL] saw a recent drop in price over the last week of trading as it traded at $103.56 at the time of writing.
On the other hand, Solana was recently able to regain its pre-FTX highs in terms of the Total Value Locked or TVL for the first time in over a year.
Once notorious for his breakdowns, Solana claimed in July and haven’t had a single outage since February.
Solana’s developer Jacob Creech recently announced a $400,000 bounty for anyone who can take down Solana.
Solana’s flagship meme coin, BONK, is also attracting the attention of enthusiasts looking to boost its adoption.
BONK recently announced a “PooperScooper” feature that will help users organize their belongings in their wallets more efficiently.
Solana: A brief history
Even now that SOL is being touted as the “Ethereum [ETH] killer,” Anatoly Yakovenko, co-founder of Solana Labs seems to agree with the idea of using Ethereum as layer-2 for the Solana blockchain.
Even Ethereum founder Vitalik Buterin is an admirer of the Solana protocol. When the SEC sued Binance [BNB] and Coinbase [COIN] In early June, it labeled several altcoins, including SOL, as securities.
Buterin regretted the way the regulator had done that targeted projects like Solana.
Heading into 2023, SOL has been hovering around the $10 support zone. It was already in the grip of a downtrend dating back to November 2021, when SOL was trading at $200.
We asked ChatGPT for its thoughts on Solana’s price, network health, and trajectory after giving it some relevant data points.
ChatGPT’s view on the future of SOL
ChatGPT has been a remarkable chatbot and the updates over the past month have made ChatGPT 4.0 quite impressive. It is a powerful tool for learning and training on a wide range of subjects.
Still, we should remember that the bot is designed to mimic a human, and it is not necessarily guaranteed to be factually accurate.
The jailbreak version of ChatGPT would likely be even more inaccurate, as it is specifically instructed not to say no to anything the user requests.
And yet it is possible to make some guesses through the chatbot about what the future might bring if we give it details about recent price movements.
What makes ChatGPT from Solana? Does the country see a path to recovery after the recent setbacks? Based on transaction fees and transaction speeds, ChatGPT seems to think Solana will be an Ethereum killer.
Source: ChatGPT
We have yet to update it on the challenges Solana and SOL investors have faced in recent months. Let’s start with the biggest dent in investor confidence:
The fall of FTX
Sam Bankman-Fried “SBF” was one of the most vocal proponents of the Solana network. The community saw him as a credible and smart entrepreneur who was CEO of one of the largest crypto exchanges, FTX.
While Binance reigned supreme in terms of volume and token pairs, FTX gave it a run for its money. Competition is also good for the sector and serves customers.
A lot has changed since then, as there is a lawsuit against SBF. It is alleged that he mixed FTX clients’ funds with those of Alameda Research to make secret venture investments.
If convicted on all counts, he could face years in prison.
Not only did Solana’s reputation take a hit, but the foundation also sold a significant amount of SOL to FTX Trading and Alameda Research.
This amounted to 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy, valued at nearly $1.1 billion at the time.
As expected, Solana’s price fell in November, dropping 45% from November 11 to December 31, from $18.08 to $8.
As rumors of FTX’s insolvency started circulating on November 5, SOL had already lost 50% the week before, when it was trading around $38.
As a result, SOL’s total losses from November 5, 2022 to December 31, 2022 were 79.4%.
Source: ChatGPT
ChatGPT certainly sounds optimistic, and early 2023 has gone extremely well for investors. And yet some network problems emerged, just like in 2022.
ChatGPT’s take on SOL
From January 1 to February 20, 2023, Solana rose 179.88% on the price charts, rising from $9.69 to $27.12.
The explosive rally is partly attributed to Bonk; a meme coin introduced within the Solana ecosystem, modeled after Shiba Inu.
Part of the total supply of $99 trillion was dropped into the wallets of Solana users in December.
The number of transactions per day showed a downward trend in the second half of December, but this reversed in early January.
The transactions soon gained momentum again. The introduction of the fun meme coin did a lot to move the community away from the dark, depressing shadow that the FTX debacle had cast on Solana.
Fed with on-chain data and price action from the past few months, the jailbroken version of ChatGPT predicted that SOL’s price would reach $800 by the end of the fourth quarter.
Source: ChatGPT
We also asked the chatbot about Solana’s past outages, which could damage investor confidence.
Source: ChatGPT
Solana’s price charts
Source: TradingView
Solana was trading at $103.56 with the stock down 4.93% in the last week of trading. The Awesome Oscillator (AO) saw red bars emerge above the 0 level, showing signs of a possible pullback.
On Balance Volume also reflected this sentiment as the price moved between the $125.12 level and down to $80.51.
If it can cross the upper limit of this range, further upward movement can be expected.
Last word
Solana has made a small win with its TVL milestone while the price was still trading in the red. ChatGPT also thinks highly of the coin, claiming it will reach a value of as much as $800 by the end of 2024.\
The image of an ‘Ethereum killer’ with better scalability, higher transaction throughput and lower transaction costs is something the chatbot is optimistic about.
While ChatGPT is a tool widely used by many for trading, it is important to do your own research before investing in the crypto space.